The data center boom has brought massive AI and crypto operations to Texas, bringing both economic opportunity and challenges for managing energy demand.
Experts warn that the data centers’ growing footprints could also bring higher rates for other energy consumers, as well as for drought-ravaged water systems.
Tech expert Omar Gallaga says that in ten years, data centers are expected to consume three times the amount of energy in Texas than they currently do.
Highlights from this segment:
– To bring the amount of power needed by data centers, electric utilities have had to add transmission lines and other infrastructure. It’s likely that some of these costs will be applied to all rate-payers, according to a recent study.
– Many data centers rely on liquid cooling for their high-performance chips, requiring lots of water. This can be a challenge in drought-affected areas, like much of Texas.
– A law passed during the 2025 Texas legislative session addresses the need to assess electricity availability, especially where large users are present. The law doesn’t address electric rates.
